Sales Tax
Sales tax is a consumption tax levied by the government on the sale of goods and services. When a business sells a product, it adds a percentage of the sale price as sales tax, which is collected from the customer at the point of sale. The business is then responsible for remitting this tax to the government. Unlike corporate income tax, which is based on a company's profits, sales tax directly impacts consumers and is used to fund public services. Different regions have varying sales tax rates and rules, which businesses must comply with.
Additional Insights
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Sales tax is a consumption tax imposed by governments on the sale of goods and services. When you purchase an item, a percentage of the sale price is added as tax. This tax is collected by the retailer and then passed on to the government. The rate can vary by location and is used to fund public services like education, transportation, and infrastructure. Understanding sales tax helps consumers know the total cost of their purchases and the role of tax in supporting community services.